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Staff Report
City Council
Item No. 3.F
Meeting Date: April 8, 2026
From: Kevin Biersack, Financial Services Director
Title: Annual Approval of the City’s Investment Policy
RECOMMENDATION:
To approve the City of Cathedral City’s investment policy.
BACKGROUND:
Each fiscal year, staff presents the investment policy to City Council for review and approval.
It is the policy of the City to invest public funds safely and in compliance with the requirements of the California Government Code to meet the daily cash flow needs while achieving a market rate of return minimizing the potential for losses arising from market changes or issuer default. This Statement of Investment Policy is intended to provide guidelines for the prudent investment of the City’s cash and to identify the City’s policies regarding the investment process. Investments of public funds shall be made in accordance with this Investment Policy. All participants in the City’s investment process shall seek to act responsibly as custodians of the public trust. Any investment transaction shall be avoided that might impair public confidence in the City’s ability to manage its assets or to govern effectively. Our primary investment strategy continues to be the safety of principal and the guideline to keep all investments made in accordance with the California Government Code.
DISCUSSION:
In accordance with updates made to Government Code Section 16429.1 and Local Agency Investment Fund (LAIF) procedures, the City of Cathedral City’s Investment Policy is required to be reviewed and updated, where applicable, on an annual basis. Our policy incorporates the key investment policy components of the League of California Cities, the California Society of Municipal Finance Officers, the California Municipal Treasurers Association, the Government Finance Officers Association and the Government Accounting Standards Board ("GASB") Statement No. 40, Deposit and Investment Risk Disclosures. At Council’s direction, should there be any changes, staff reviews the City’s Investment Policy and current investments with the Finance Advisory Committee during its annual meeting to which the committee concurred with the policy and City Treasurer’s investments. This policy positions the City of Cathedral City to continue to provide the conservative stewardship of 1 3
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our funds, while maximizing earnings and maintaining liquidity of funds.
Staff has coordinated with the City Treasurer and we have determined there are no changes proposed to the investment policy.
FISCAL IMPACT:
None
FIVE-YEAR STRATEGIC PLAN:
Goal C - FISCAL STABILITY AND SUSTAINABILITY
Objective: Cathedral City has economically prospered by facilitating the investment of private dollars in high quality development which benefits the community. We remain financially solvent by instituting prudent fiscal policies and transparent financial practices.
Action C-7: Continually review and streamline internal financial policies, procedures, and practices to remove unnecessary controls without sacrificing accountability and transparency.
ATTACHMENTS:
1. 20310_Investment Policy - April 2026